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Pastimes : Trading the markets..... -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (2632)	1/13/2001 9:58:35 AM
From: robert b furman	Read Replies (1) \| Respond to of 4583

Hi David, A cup with a handle is a term coined by William O'Neill,founder of the paper Investors Business Daily.You can access his paper at:http://www.investors.com/. While there you can sign up for free 10 day trial subscription. It , along with GZ's thread are my two of my three must reads of the day.Very often O 'Neill will refer to cup and handles in the " Investor's corner" Section. It is his trading philosophy that you buy stocks as they break out 1/8 above the highest point of the handle - if they break out on high volume. O'Neill (like GZ) has a rich wealth of experience from a life time of studying and trading markets. They both are gracious enough to share openly their thoughts. I like to buy the dips rather than breakouts(with a long term time frame in mind). I don't use the break out on volume as an entry point but I do use it as an "ADD TO" point. It is the last time to safely add an aggressive position to a holding. It drives me nuts to call it safe because very often a breakout will retest the pivot point(1/8 higher than the highest part of the handle). In fact the retesting of a pivot point is so common,that if I see many breakouts occurring in stocks I've selected for candidates to buy - I'll wait for the retest before I buy. In December of 99 I bot Intt and Sbse both on a retest of a breakout on the same day - they both proved to be perfect entries as I was up 1-3 points within 2 days - that takes the stress out of a new position very nicely - HEHEHE. Any how hope that helps.I believe Kvhi is just completing a 4 year cup and handle now. It is redrawing the ground lost from its last trip to 11 1/4 - this is the handle.If it breaks 11 3/8( on high volume) I'm gonna try to buy 10,000 - if it retest I'll try to snag another 5,000 shares. This is my long term speculation and it is my largest holding. I was an owner of this beasty back when you could buy it for 1 1/16. I think it is a long term example of a cup and handle that has taken an extremely long time to develop - therefore more powerful.This development has coincided with the success of their acquisition and success in creating the technology of Fiber Optic Gyros.It is about to be better understood by the investment community ib general. JMHO Hope that helps and may your cup runneth over - HEHEHE Bob